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DRAM market to rise by 55 percent this year, iSuppli predicts

Posted: 07 Mar 2002 ?? ?Print Version ?Bookmark and Share

Keywords:dram? isuppli? sdram? ddram?

According to the latest report from iSuppli entitled "DRAM Market Update and Forecast," DRAM revenues are expected to increase by more than 55 percent this year to more than $17.3 billion, a significant upgrade from its projections two months ago of a flat revenue.

Nam Hyung Kim, senior analyst, iSuppli, indicated, "Consolidation within the DRAM business over the past several months allowed supplier to rein in excess production capacity very rapidly to better match the continuing uncertain demand patterns. In the month of December, aggregate ASPs rose more than 20 percent for most products and continued to increase through January and February at remarkable rates."

Kim noted, "Contract unit prices for 128Mb SDRAM purchased by major PC OEMs actually reached more than $4.50 this month; nearly triple the ASPs for the same components in November."

"Product mix had a lot to do with this increase in that suppliers shift significant factory capacity into the production of DDR DRAM in anticipation of the introduction of new highly graphic integrated chipset, 845G. With these Intel chipset yet to hit the market, OEMs have not switched to the faster and more cost effective DDR parts and a temporary shortage is beginning to develop in the SDRAM marketplace," Kim said.

iSuppli expects this supply and demand balance to continue throughout the remainder of the year, with ASPs rising slightly and spot shortages continually developing due to product production mix variations.

"PC OEMs will remain the market driver for DRAM revenues for some years to come. Windows XP is driving memory content in the average system from less than 170Mb to more than 220Mb right now, and the white box and module makers are enjoying the XP wave with record demand for memory upgrades spurring DRAM consumption," Kim added.

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